Financial Daily from THE HINDU group of publications
Monday, Oct 28, 2002
Financial Daily from THE HINDU group of publications Monday, Oct 28, 2002 |
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Markets
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Commentary Columns - ADR Watch Lacklustre earnings affect sentiment K.S. Badri Narayanan
THE US stocks maintained the bull-run for the straight third week as investors continued to show confidence. As a result the S&P 500 and the Dow Jones Industrial Average gained 1.5 per cent to close at 897.65 and 8443.99 respectively while the tech-focussed Nasdaq surged 3.4 per cent to finish the last week at 1331.13. However, Indian bourses moved in opposite direction with corporates such as Hindustan Lever and ITC declaring disappointing financial performance. This pushed the BSE Sensex to new 52-week low of 2855.90 during the week. The Sensex closed the week at 2875.53 against the previous week close of 3009.76, a drop of 4.45 per cent. The NSE's S&P CNX Nifty closed the week at 932.20 (971.65), shedding over four per cent. Moving to ADR, counters such as Dr. Reddy's Lab, MTNL and VSNL registered their new 52-week lows on the back of lacklustre financial performance. DRL closed the week at $14.40 ($15.02), after touching a 52-week low of $13.93 during the week. On the BSE also, the stock recorded its new low (since May 2001) during the week and closed at Rs 687.75 (Rs 744.90). The company's second-quarter profit slumped to Rs 99.2 crore as against Rs 143.40 crore registered during the same quarter last year. MTNL closed at its new-year low level at $3.97 ($4.20) after the company announced a 35.4-per cent drop in net for the quarter ended September. The stock finished at Rs 91.50 (its lowest level since August 12, 1993) against the previous week close of Rs 102.50 on concern the Government may not sell its stake and may instead merge the company BSNL. VSNL, whose net dipped by 33 per cent, closed at $3.99 ($4.18) after recording its new 52-week low of $3.97. . Led by Satyam Computer, infotech counters also ended on negative note. Satyam, which announced an 11-per cent fall in net profit, closed at $9.92 ($10.26). Wipro and Infosys closed at $28.73 ($31.10) and $69.90 ($71.6998) respectively. There were not much deviations in the premium of the ADRs to the underlying domestic equities even as Infosys maintained its premium above 80 per cent mark.
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